Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Can Fatalism Explain why Entrepreneurs Tend to Save so Much?
Issue: Vol. 11, No 1, 2018
Published date: 30-03-2018 (print) / 30-03-2018 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Gabriele Ruiu
University of Sassari
Keywords: fatalism, entrepreneurship, saving propensity, cultural beliefs and economic output
DOI: 10.14254/2071-789X.2018/11-1/19
Index PUBMS: c208d2fb-869d-11e8-911b-901b0efa6e97
Language: English
Pages: 293-310 (18)
JEL classification: J24, L26, Z10

According to robust empirical findings, entrepreneurial households tend to save more than non-entrepreneurial ones. This difference in saving propensity is not merely accounted by high entrepreneurial income. This paper aims to offer a better understanding of the financial behaviour of entrepreneurs. Building on previous empirical findings on the effect of fatalistic tendencies on economic behavior, we argue that fatalism may negatively affect both the decision to save and the decision of becoming an entrepreneur. Using data from the fifth and sixth wave of the World Value Survey for the empirical testing of this idea, our multivariate analysis shows that, controlling for a large set of individual and contextual traits, fatalistic beliefs discourage both choices.


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